Volatility describes the size and speed of price movement. High volatility means larger, faster swings — more opportunity but also more risk. It often rises around major economic news. Understanding volatility helps you size positions and set sensible stops.
Forex Term
Volatility
How much and how fast a price moves.
Example
A currency pair can become highly volatile around a central bank rate decision.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.